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by pseudosavant
48 days ago
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I've been through an LBO before, my first thought when I saw this news was: so eBay is going to have to pay interest on a $50B loan now? eBay had $2B of net income in the last year. That might get them half-way to paying their annual interest payment if this deal closes. Get ready for the inevitable layoffs to cover that interest payment. |
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If there is iffy interest coverage for the debt and assets might be a stretch to cover (principal + interest), why will someone sponsor the debt here ?
Also, rates seems to be high, at least compared to recent history, to be favorable for this kind of LBO.